Coinbase (COIN) shares fell roughly 5% in after-hours trading Thursday after the crypto platform reported second-quarter results that missed Wall Street expectations, as lower crypto prices weighed on one of the company's largest revenue sources.
The company posted revenue of $1.22 billion, versus consensus expectations of $1.29 billion. Transaction revenue came in at $599 million, compared with expectations of $628 million. Subscription and services revenue totaled $555 million, versus estimates of $599 million, as investors looked for signs that recurring businesses continued to offset weakness in trading activity.
Coinbase added 819 BTC to its balance sheet during the second quarter, bringing its total holdings to 17,211 BTC, an increase of 5% quarter-over-quarter.
The results came after a difficult quarter for crypto markets. Bitcoin fell roughly 14% during Q2 while ether lost about 25%, reducing both trading volumes and volatility across spot markets. Trading activity weakened in April and May before improving modestly in June. Robinhood (HOOD) reported on Wednesday that its crypto trading revenue fell 38% year over year, to $100 million from $160 million.
